The Central Agency of Legitimacy Supervision cooperating with the CBL Advisory committee on Islamic Banking arranged a workshop on Tuesday morning the 18th of October 2016 at the Alwedan Hotel concerning “Evaluating the Transitional role of Islamic Banking in the Libyan Banking Sector (Reality and prospects).” The workshop was inaugurated with a speech by the Director of the Central Agency of Legitimacy Supervision, confirming that the enterprise of Islamic Banking is a national project that aims to please God and his messenger. The expectation for transformation was considered to be speedy, but unfortunately the current circumstances prevented this from being accomplished. The Head of the Advisory Committee of Islamic Banking, confirmed in his speech the efforts that have been made for the transformation process, according to Banking Law No.(1) for 2005 and under Law No.(46) for 2012. The committee is working on forming a strategy for Islamic Banking in Libya in cooperation with a team of experts from the World Bank which will be ready in the coming days to be displayed for all concerned parties especially commercial banks. The Head of the Advisory Committee of Islamic Banking made the speech to the Governor of the Central Bank of Libya, addressing the transformation vision of the Central Bank of Libya and focusing on the development and building of capabilities first. Also emphasized, the Libyan banks will keep up with the work of other countries and will manage to provide the best banking services to the Libyan people pointing out the challenges facing the banking sector during the lack of security and during these extraordinary political conditions that affect the daily life and the banking services sector in particular. The Attendees pointed out that the workshop objectives is to define the reality of the banking sector in Libya and the contributions of Islamic finance. Also pointed out is the role the other relevant authorities in the success of the transition to Islamic Banking and also the diagnostic trouble to identify particular difficulties being faced as well as discussing the solutions. It was proposed to overcome the difficulties through seeking coordination with the competent authorities internationally in addition, gaining knowledge from the experience of the Libyan banks and sharing this local experience and expertise between banks by identifying: – The Transformation requirements for each bank. – Efforts for the success of the transformation. – Difficulties facing the process of transformation. Two sessions of work were held during the workshop. The first session was chaired by Head of the Advisory Supervisory Commission of the Central Bank of Libya. Addressed was the role of the Commission and its relation with the Advisory Supervisory Commission of commercial banks according to Banking Law No.(1) for 2005, amended by Law No. (46) for year 2012 and the mandated circulars issued by the Board of the Central Bank of Libya. The following was discussed: – Paper on Sahari Bank (Evaluate the transformation to Islamic Banking). – Paper on North Africa Bank (Evaluating the Transformation to Islamic Banking). – Paper on United Bank The second session was chaired by Head of the Advisory Committee of Islamic Banking, which has discussed a number of working papers submitted according to the following: – Paper on Central Agency of Advisory Supervision. – Paper on Jumhuria Bank (steps of transformation to Islamic Banking). – Paper on National Commercial Bank (the transformation plan of the NCB bank). The second session was chaired by the Head of the Advisory Committee of Islamic Banking, to discuss working papers presented: – Paper on Sahari Bank (Evaluate the transformation to Islamic Banking). – Paper on North Africa Bank (Evaluating the Transformation to Islamic Banking). – Paper on United Bank The workshop closed by a long discussion and the most important recommendations of the meeting were noted.